Book Review: A Man for All Markets

https://www.amazon.com/Man-All-Markets-Beating-Street-ebook/dp/B01N4LB3LK/ref=tmm_kin_swatch_0?_encoding=UTF8&qid=&sr=

A Happy New Year to all.

Readers of this blog will hardly be surprised at my excitement and enthusiasm for this book. I finished the first reading of this book in 2 sittings over 2 days. I am now on my second reread.

Initial takeaway points, relevant to both investing and life in general:

1. What matters most in life is what you do, how you do it, and who you share it with. Note: cross refer with Guy Spier's book. Essential for all seeking a better life.

2. Understanding and dealing correctly with the trade-off between risk and return is a fundamental, but poorly understood, challenge faced by all gamblers and investors. Note: I have bleated about this ad nauseam, but I will stop now, as it is to my advantage that participants continue to misunderstand this. To recap: high risks do not equal high returns.

3. The surest way to get rich is to play only those gambling games or make those investments where I have an edge.

4. The Ten-Count System had shown moderately heavy losses mixed with "lucky" streaks of the most dazzling brilliance. I learned later that this was a characteristic of a random series of favorable bets. Note: read this again carefully- it is a goldmine.

5. If the market does a good job of using today's public information to set current prices, then the only investors who have an edge are those with material private information. Note: I am not sure I agree with this. There is often great variability between system participants irregardless of system average values.

6. Because you can't get out in time when trouble is coming, the excess returns you expect from illiquid investments may be offset by the economic impact of unforeseen future events. Note: very relevant to those focused on small caps.

7. Economists have found that one factor has explained a nation's future economic growth and prosperity more than any other: its output of scientists and engineers. To starve education is to eat our seed corn. No tax today, no technology tomorrow. Note: important message for our political leaders, and also forming a seed for my own personal end-game in life.

Reporting season is coming up- busy time ahead.

Enjoy and Prosper,
Yours One-Legged